Standard Pacific Takes Quarterly Loss on Impairment Charges

Revenue from homebuilding declined to $675.5 million from its year-ago total of $834.1 million, while gross margins on home sales plummeted to 0.9% from 19.2%. New home deliveries fell 25% during the 3-month period.

Analysts were expecting SPF to report a quarterly loss of $1.54 per share on revenue of $603 million. In yesterday's session, the homebuilder added nearly 1% to edge above its 20-day moving average. However, obstacles still loom overhead in the form of the shares' 10-week and 10-month trendlines.

Option traders were feeling relatively optimistic toward SPF ahead of its quarterly report; its Schaeffer's put/call open interest ratio checks in at 1.31, lower than 60% of other such readings taken during the past year. On the other hand, short interest crept 9.5% higher during the most recent reporting period, and now accounts for 38.5% of the stock's available float.